Some of our company’s business is to provide import and export agents for companies that do not have foreign trade rights. According to the company regulations, in the case of financial security, the salesman must understand the import and export products, the credits of suppliers and customers. I feel that the agent only needs to manage the receipt and payment of funds, control the risk of funds, do not need to join in other things. Is my understanding right?
“You can never be too careful,” this sentence is very reasonable. In the field of foreign trade agency, it is equally applicable.
Society is very complex, and so is the foreign trade industry. You may think that the agent only needs to provide customs declaration information and collect the money to pay. All other things are following the agency agreement. And the problem is the consigner’s responsibility. There is nothing wrong with the above point of view in theory. But in reality, people often use this kind of psychology to exploit loopholes.
Foreign trade company agented a batch of business exports. A domestic company found them through an acquaintance, then signing agency agreements, shipping, and collecting foreign exchange. Soon, the company issued a VAT invoice, and the foreign trade company paid together with the tax rebate paid in advance. The matter was over for them. But, About half a month later, the Foreign Taxation Bureau found them and said there was something wrong with the VAT tickets. The invoicing company is suspected of fraud, virtual invoicing, etc. However, this company can’t even find anyone. The tax loss of this invoice can only be borne by the foreign trade company that received the invoice. It has no choice but to bear the losses.
They spent time proving that they were victims, not the accomplice. They tried to find the people they used to contact, but those people seemed to have disappeared. Then, they asked the acquaintance, but he said, “you did the business and the contract by yourself, and you must bear the risks. ” Finally, all the losses can only be taken by foreign trade companies. Therefore, you must be careful about the details of suppliers, products, and clients.
Here is another example. The goods of a foreign trade company are inspected at the port. The customs declaration showed it was furniture, but the customs opened the container and found rice in it. The state strictly regulates rice exports, and exports require quotas. This act of transporting rice in the name of furniture is smuggling and crime. Then the customs first check the foreign trade company. This batch of goods is declared in the name of the foreign trade company. The first person responsible is, of course, the company. As for the foreign trade company saying that it does not know what goods are shipped, just acting as an agent, these explanations may bring a slight relief from the penalty. But fines are inevitable. Maybe the relevant responsible person must bear criminal responsibility, and the customs level will also decline.
Therefore, foreign trade companies must have a sense of risk prevention. For the business, the person in contact and the goods involved, you must know clearly. There is no justification for the goods exported in the name of your company that you do not know anything. You can only blame yourself for not strict control, and management is not standard.
I have a habit. If there is a new manufacturing plant or a new product for export, I usually go to the site to check it when packing. On the one hand, I understand the product and let the client feel that although we are just the agent, we are still responsible. On the other hand, it is for safety. I also want to make sure that the goods shipped and the customs declaration are consistent. In this case, stop immediately if there is a problem. Acting as an agent is to make a little profit. You should not take on some additional risks. It is better not to make a profit than to put the company in danger.
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1. Is There Any Room for Newcomers in Foreign Trade?
2. What Kind of Employees Do Foreign Trade Enterprises Prefer?
3. How Do Newcomers Choose the Right Firm?
4. How Do Novices Prepare for Interviews?
5. How to Choose the Right Foreign Trade Position?
6. Are Girls Suitable for Foreign Trade Sales?
7. Do Exports of Traditional Industries Have Development Space?
8. Is Foreign Trade Newcomer’s Income Generally Low?
9. How to Adapt to Foreign Trade Posts Asap?
10. How to Improve English Ability in the Short Term?
11. How Can Newcomers Better Communicate with the Leaders?
12. How to Get the Client’s Trust in the Short Term?
13. What Should I Do if I Have A Dispute with the Client?
14. How to Adjust Attitudes When Meeting Differences in Company?
15. How to Communicate with Foreign Customers?
16. What Should I Do if the Company is Filled with Intrigue?
17. What Reference Books Should Foreign Trade Newcomers Read?
18. How to Make Yourself Look More Professional?
19. How to Adjust Mentality When You Switch to Foreign Trade?
20. How Does the Salesclerk Calculate the Gross Profit?
21. How to Calculate the Export Tax Rebate?
22. How do Newcomers Develop Market Based on its Features?
23. How to Calculate the Export Cost Price?
24. How to Fill in the Vendor Registration Form?
25. What is the Format of A Letter of Authority?
26. How to Attract Potential Customers in the Exhibition?
27. The Main Features of Reverse Auction and the Skills to Attend It
28. The Experience of Attending A Reverse Auction
29. Why Don’t Place Orders for Good Price and Products?
30. What if Customers Require Not to Supply to Its Competitors?
31. Can You Really Buy Real Buyer Information?
32. How to Make A Standardized Quotation?
33. How to Prepare for Customers to Visit Our Factory?
34. How Should We Arrange for the Visit of Executive Clients?
35. How to Prepare for the Quality Inspection?
36. What Should Be Noted When Eating Food with Customers?
37. How to Work as A Good Banquet Translator?
38. How to Reasonably Arrange the Time When Customers Visit?
39. How to Prepare for Visiting Clients Abroad?
40. How to Make the Minutes of the Meeting?
41. What If Clients Propose to Sign Exclusive Sales Agreements?
42. Is the Cost of the Hotel Paid by Customers or Us When Visiting?
43. Can Subcontractor Warranty be Provided to End-users?
44. What If the Customer Suddenly Does Not Want the Goods?
45. Suppliers Lost Chances for Backing Up on the Highway
46. How to Maximize Profit through Reasonable Price Strategy
47. How Should Foreign Trade Companies Find their Position?
48. How Do Foreign Trade Companies Choose Export Suppliers?
49. How to Enhance the Control and Influence over Suppliers?
50. Is It Proper to Let Clients Ask Manufacturers to Solve Problems?
51. How to Agent Domestic Factories to Export Their Products?
52. Which Way to Pay the Agency Fee is better?
53. Why Do You Have to Know about Products, Suppliers, Clients?
54. The Process and Cost Calculation of Agent Import Business
55. How to Straighten Out Relationships in the Agency Contract?
56. How Do We Show That We Need An Agent in the Contract?
57. How to Do Good Jobs of Agency Import Agreement Service?
58. How to Determine A Reasonable Agency Fee?
59. Is the Agency Business with Low Agency Fees Worth Doing?
60. Why Do Manufacturers with Foreign Trade Rights Want Agents?
61. How to Use Foreign Trade Company to Open Overseas Market?
62. What are the Difficulties in Collecting Money by Letter of Credit?
63. If Supply Cycle is Long, How to Control the Risk of Quotation?
64. What if Tax Rebate Policy Cause Prices Lower Than Costs?
65. Tips for Paying Commissions to Foreign Middlemen or Agents
66. Why Use Written Documents for Business Contacts?
67. How to Control the Risk of Export Quotes?
68. How to Trade in the Middle East While Controlling Risks?
69. How to Offer the CIF Price to Products with Long Supply Cycle?
70. The Main Situation of Foreign Trade Fraud
71. How to Handle Costs of Repacking Goods at Destination Port?
72. What If the Qualified Products Aren’t Enough to the Contract?
73. How to Handle the Return or Repair of Exported Goods?
74. What Should I Do with Insubstantial Complaints from Clients?
75. How to Handle Disputes in the Agent Export Contract?
76. What If Clients Ask Us to Replenish or Repair Products?
77. What if Clients Demand Compensation for Packing Damage?
78. Parts of Previous Goods Rusted, Clients Ask to Replenish Freely
79. Who Should Bear Import Tariff and VAT for Free Replenishment?
80. What If the Goods Deformed the Container Before Shipment?
81. What If Customers Threaten to Punish Us for Quality Problems?
82. Why Do Customers Never Feed Back on Our Quality?
83. What If Customers Ask Compensation for Damaged Products?
84. What If the Forwarder Delay Delivery, Bringing Extra Costs?
85. What If Customers Have Placed Orders with Wrong Quotes?